On account of reasons such as tax holidays and foreign investments, people often buy multiple properties with the aim of reselling at higher rates at an opportune time. However, currency demonitization leading to curb on cash transactions has certainly impacted the secondary or resale market since this segment does see involvement of cash component. Is it then judicious to sell your flat/house at a loss, or worse leave the property locked and speculate indefinitely? All this while you suffer a constant financial drain in paying up property tax, society charges, periodical maintenance and maybe EMIs, with no returns.
Remember your house/flat is an investment. Any decision regarding handling of the investment should be based on sound investment principles. Will it then not be prudent to rent out the property and await the opportune moment to dispose it as and when the market rate stabilizes. Gurgaon being the hub of corporates including MNCs does offer a clientele from the middle to high level executives who prefer well appointed apartments in good locations . With a glut of such type of condos, the flats which are tastefully done up offering modern fitments and amenities will be the obvious choice. Expats are particular in customizing the apartment before moving in, of course the rent will be commensurate.
To summarise, some of the far-reaching advantages of renting out well fitted apartments are :-
- Lived in property will be constantly maintained. Locked flat will suffer deterioration, particularly in plumbing and drainage.
- Steady stream of income. Compensates EMIs, property tax,maintenance charges etc.
- Tax on rental income offset against interest on repayment of loan if any.